Well, if there's something wrong with having all of that percentage of hashing power being located in one location there's always the opportunity for you to invest into your own mining farms and reduce the percentage they control, right?

if they have cheap electricity, cheap hardware and a lot of space that they can set up their investments in, why not make use of that? There's nothing that should be preventing them from getting to do whatever they want with the opportunities they have. It's up to the market, in this case, the miners, to start to compete against their rivals in other countries if they want to see change. It's not the Chinese's fault they're doing the best they can.